Tether price prediction, price prediction for the world's largest stablecoin
Tether (USDT), the world's largest stablecoin by market capitalization, has shown signs of weakness against the dollar following the collapse of the Terra UST stablecoin and the Celsius Network lending platform.
But prices stabilized after both events, and the chief technology officer (CTO) told owners that cash continues to support buybacks.
Tether, which aims to match USDT to USD 1:1, fell to $0.9485 on May 12, 2022, when the UST collapsed, only returning to dollar-to-dollar parity after the 20th poop. But it's been there ever since, despite the occasional shake.
What is Tether (USDT)? How does the USDT stablecoin protocol differ from UST? What does UST contamination mean for Tether? And what are the latest price predictions for the cryptocurrency Tether after the recent volatility?
In this article, we will look at recent developments around stablecoins and try to answer these questions. Link the price of viewing
The UST case raises concerns about Tether's security.
Tether (USDT) and TerraUSD (UST) are both stablecoins, cryptocurrencies whose value is tied to another asset or currency, such as the US dollar. It aims to offer investors a way to keep their money in digital form without being exposed to the volatility of cryptocurrencies such as Bitcoin (BTC) or Ether (ETH).
Stablecoin owners can use it to borrow, lend and earn interest in decentralized finance (Defi).
UST has become one of the biggest stablecoins after USDT and USDC Tether. It is run by a consortium that includes payments company Circle Internet Financial, cryptocurrency exchange Coinbase (COIN), and Bitcoin mining company Bitmain.
Before the collapse, UST had a market cap of $18.7 billion, USDT $83.24 billion, and USDC $53.53 billion. Tether's market cap fell to $67.9 billion on September 16, 2022, while USDC fell to $50.3 billion and UST to $315 million.
The main difference between UST and USDT and USDC is that USDT and USDC are collateral, while they are algorithmic stablecoins (unguaranteed stablecoins that use an algorithm to maintain a constant value).
The UST algorithm used an on-chain exchange function that exchanges 1 UST for 1 USD worth of LUNA, regardless of price. This is to encourage users to exchange UST for LUNA when the value drops below $1 and exchange LUNA for UST when the price of the stablecoin rises above $1 to burn some of the LUNA and reduce the circulating supply. reduce the price to support. The rest went to the treasury.
UST's growth was fueled by the anchor protocol, which pays owners 20% interest on their deposits. However, Terra acquired a 20% stake in the company's treasury in cash. Terra cannot keep payments unless users spend more UST and raise the price of LUNA.
On May 9, 2022, traders began selling UST to keep it away from the US dollar. The price of LUNA fell rapidly as more LUNA was generated from the sale of UST, causing hyperinflation.
UST fell to $0.7934 on May 12 and continued to decline to $0.07601 on May 19 as USDT/USD stabilized. Luna Foundation Guard, which bought bitcoins after criticism that the security of the binary protocol was not supported, was forced to sell its bitcoin foundation in a failed attempt to stabilize LUNA.
The debugging came from a significant breakout from Anchor's 53 bands, pushing UST to $0.98, fueling a bitcoin selloff. Assets are liquidated to maintain levels. During the weekend, the anxiety temporarily subsided and UST again approached $1, but not for long," Arcane Research's analysis said.
The epidemic caused by the collapse of the Terra stablecoin has not only spread to Bitcoin (BTC), but also to Tether, a cryptocurrency that has been questioned in the past due to the release of more than 80,000 coins in a short period.
When the New York Attorney General investigated the Tether token in 2019, he said that "the operator of the trading platform Bitfinex, which also operates the virtual currency Tether, was wearing a mask to hide what appears to be $850.0 million. in "a mix of consumer and corporate funds" in losses and those funds were not denominated in US dollars, at least from June to September 2017.
As a result, Tether and Bitfinex agreed to pay an $18.5 million fine to settle the dispute.
What are your thoughts on USDT/USD?
“The largest stablecoin, Tether, is said to be made up of about 85% cash and assets such as currencies, with the remainder made up of other assets such as corporate bonds and other digital tokens. However, Tether has seen traction in the past.” dollar currency", so the market has been skeptical for years about the reserve's assets and whether Tether really has enough reserves to recover the stablecoin.
“The controversy may drive stablecoin investors away from USDT as the UST move is another reminder of the Tether market's lack of transparency about its currency.” This morning's USDT sell-off also came after Tether's CTO expanded on the matter on Twitter.
“With the recent losses of UST investors, many users may be wondering if they can trust Tether USD2,” the company said in a May 16 blog post.
“Since 2015, Tether has not missed a $2 per token redemption request paid at $1/USD2. USD2 rarely lets this price out on the open market, although there were a few times when it fell on exchanges like Binance.
He also explained that these actions do not represent a loss of relationship or support from the depositors, but instead represent a profit in the transaction above the minimum deposit value, he said;
“There is not enough money on all exchanges to exchange $2 for a dollar. In cases where the exchange rate is too low, investors flock to Tether to demand compensation, and this is exactly what happened with the month of May. 11 May,." 12 USD2 pushed the price away from the normal price of $1 in some exchanges. Therefore, on these exchanges, investors bought $2 to get the discount and cashed out the $2 tokens based on Tether.
Tether worked from 11 to 16 years old. Seven billion USD crypto redemption for verified individuals by May 2022, the statement said.
On May 19, 2022, Tether Holdings released its quarterly report detailing all of its stocks. The data showed that commercial paper inventories were down 17% and US stocks were down 17%. Treasure chest and raised. As of March 31, 2022, the company has combined total assets of $82.42 billion, which gives its market value.
A recent survey by Saxo Bank Mads Eberhardt on July 4, 2022, highlighted the issue of transparency in cryptocurrencies;
Tether has not been very clear about the amount it says it will return to the stablecoin 1-1. After the collapse of TerraUSD, Tether left the dollar worth only $0.97 on the exchange because people didn't know about the coins that would follow Tether I'm afraid TerraUSD It seems the producers and traders are even less scared but they buy Tether in the discount trade to buy Tether directly with dollars.
“Tether almost recovered a few days later, but its market cap dropped from $83 billion to $75 billion. Since then, the token market has further reduced supply.” Now it's about $66 billion. In recent months, yes. Tether seems to have no problem converting $17 billion worth of stablecoins into fiat.
“Tether is the cornerstone of the crypto market and if Tether is not fully supported the market will suffer. Market participants also fear that Tether has pushed the price of crypto up by trading with stablecoins and is not fully backed.”
While Tether's offerings have declined significantly in recent months, Eberhardt noted that traders are more interested in the stablecoin than other comparable cryptocurrencies because "trading partners listed on Tether are more similar to the USDC exchange rate."
On August 19, accounting firm BDO reported that Tether had $66.4 billion as of June 30, down 20% from $82.4 billion in March.
On September 12, Tether announced the launch of the Near Protocol (NEAR) blockchain.
Tether cancels Celsius without loss
On July 13, 2022, financier Celsius Network (CEL) announced it would file for bankruptcy, leading to a major price drop that shook the market. The decision comes a month after lenders withdrew and suspended transfers between customer accounts due to "sluggish market conditions."
USDT responded to the news by dropping to $0.9975 on June 13, 2022, when Tether unveiled Celsius's BTC loan.
While rumors of Celsius's failure continue to circulate, Tether has gone to great lengths to explain that its investment in Celsius has nothing to do with USDT's stability and health.
“While the Tether investment includes an investment in a company that represents a small portion of our property, there is no link between this investment and our stock or loyalty,” the company said on June 13, 2022.
In a later statement on July 8, 2022, Tether stated that the loan agreement with Celsius avoided significant business risk.
In particular, the BTC loan to Celsius was 130 percent approved, but "the decision to cancel the loan guarantee is in the initial terms of the contract" for all parties.
“This step has been taken to minimize the impact on the market as much as possible, and in fact, Tether returned the remainder of the Celsius contract after the loan was approved,” the statement said. "Celsius was canceled and nothing was lost for Tether."
Tether Price Prediction: An Analyst's View
On May 16, 2022, Vetle Lunde, an analyst at cryptocurrency research firm Arcane, wrote that Tether's $0.945 drop on the FTX exchange is "a clear sign of market weakness and confusion." He claimed:
“Wide differences in the price of USDT versus the $1 coin are usually associated with periods of intense stress and market depression – i.e. periods of high penalty potential. Tether's decline on Thursday presented an interesting opportunity for funds to come in. Tether's rejection, which may have been due to a lower Tether market, sent USDT back to $1.
Lunde described the "consequences of a hypothetical USDT crash" with a quote: "We don't see this as a likely event, be careful as you enter the USDT FUD plateau [fear, uncertainty, and doubt]. What a pointless UST situation.
“Imagine USDT will see a sharp and dramatic split. This could have a strange impact on the market in the short term. More than 50% of OI [open interest] in the derivatives market is based on USDT collateral. the collapse of Tether will cause incredible instability." .. Impact on Commodity Market Compared to the price of BTC-USD, the BTC/USDT price will rise, while the commodity price will fall, which can cause astronomical short markets and total market chaos.
“The result will be a huge blow to confidence in the industry. The impact is hard to measure. Funds, market makers, and maybe even exchanges will go bust. It will be an event on Mt Goxian,” wrote Lunde, referring to the $ 460 million Mt. Gox crypto exchange that was hacked in Japan in 2014.
Tether (USDT) price for 2022-2025
The problem with Tether is that since it is a stablecoin it has to stay at $1 all the time. So it really doesn't matter how far into the future we are — whether it's a Tether price forecast for 2025 or a Tether price forecast for 2030, the number should theoretically stay at least at $1.
On September 5, 2022, the algorithmic forecasting website WalletInvestor had a USDT price forecast primarily pegged to the US dollar stablecoin for the next five years. The price prediction of the Tether coin has been updated with only minor changes between $0.996 and $1.005.
DigitalCoinPrice had a Tether price prediction for 2022, in October the price reached $1.01, then we say there.
Algorithmic meteorologists did not provide a long-term prediction of the Tether cryptocurrency price for the 2040s and 2050s.
Given Tether's (USDT/USD) forecast, it's important to remember that cryptocurrency markets are still volatile and unpredictable events like Terra's collapse are difficult to predict accurately. Therefore, the perception of analysts and forecasters based on algorithms can be wrong.
If you are considering investing in crypto tokens, we always recommend doing your research. Before making any trading decision, check out the latest market trends, news, technical and fundamental analysis, and expert opinions. Remember that past performance is no guarantee of future returns and never invest money you can't afford to lose.
tether price prediction 2025 in INR
tether USD price prediction 2021
tether price prediction gov capital
tether crypto price prediction
tether usdt price prediction 2025
tether usdt coin price prediction 2030
tether future price prediction
tether price prediction end of 2021
Social Plugin